Paul Swinand: We wanted to highlight Ralph Lauren (RL) as a stock that we think is undervalued right now. The stock right now has a headwind because investors are worried about exposure to Macy's (M), which is 12% of sales. They are also worried about the company spending on infrastructure and IT as they roll out a new e-commerce platform.

However, we like the stock for the long run because of its portfolio of brands, which includes Polo, and because they are underpenetrated in Asia. Asia, including Japan, is only about 12% of sales and, in China, they only have about 100 stores, which is much lower than most of their luxury peers.

We think the stock is worth $163, and it's currently trading around $120. With the market worried about the current situation, we think long-run investors will be rewarded. Even with just a modest 5% growth rate projected for the long run, we think the stock is undervalued.